Here’s what stood out this quarter.
Auto, Home, and Renters Shopping Show Mixed Activity
Auto insurance shopping, which hit an all-time high in February, slowed down in Q2. While overall shopping rates dipped, switching behavior remained elevated, matching the record levels seen in late 2024. The average premium moving to new carriers was more than $4,700, highlighting how consumers are seeking meaningful savings by switching providers.
Home insurance showed a slightly different pattern. Shopping and switching picked up in June, reaching the highest rates since October 2024. Rising property insurance costs continue to push homeowners to explore alternatives.
Renters insurance followed yet another trajectory, with shopping declining in March but switching increasing in the first three months of the year, suggesting that even renters are feeling price pressures and looking for better deals.
Higher-Risk Customers Are Driving More Activity
One of the most striking findings from this quarter is the surge in shopping among higher-risk customers, particularly those with lower credit-based insurance scores. Shopping activity jumped 10 percent for auto insurance and 5 percent for property insurance compared to last year.
This trend indicates that insurers have shifted back to traditional rate models, where the steepest premium increases fall on riskier policies. The Northeast saw the highest auto insurance shopping activity, likely due to double-digit rate hikes in 2024. For property insurance, the focus remains squarely on profitability, which means homeowners in higher-risk areas may continue to see increased costs.
Bundled Customers Are Breaking Away
Historically, policyholders who bundled their auto and home coverage were considered the most stable and loyal. That is changing.
As auto rate increases have leveled off while home insurance premiums continue climbing, bundled customers are shopping and switching at much higher rates than in the past. Meanwhile, unbundled customers’ switching behavior has flattened over the past five quarters.
This trend is expected to continue as consumers look for cost-saving opportunities. New digital marketplaces and comparison tools are making it easier than ever to shop for policies, meaning even long-term bundled customers are no longer “locked in” by convenience.
Looking Ahead
The Q2 2025 data points to a consumer base that is:
- More price-sensitive, especially in markets where insurers raised rates aggressively in 2024
- More willing to unbundle, particularly if home insurance rates outpace auto rate changes
- More empowered to switch, thanks to technology that simplifies the process
For insurers and agents, this quarter underscores the importance of proactive communication, competitive pricing strategies, and clear explanations of value to retain customers. As premiums remain in flux and consumer habits shift, shopping and switching behavior is likely to stay active through the rest of the year.
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